You would like to determine if the population probability of success differs from 0.70. You find 62 successes in 80 binomial trials. Implement the test at the 1% level of significance. (You may find it useful to reference the appropriate table: z table or t table)
a. Select the null and the alternative hypotheses.
H0: p = 0.70; HA: p ≠ 0.70
H0: p ≤ 0.70; HA: p > 0.70
H0: p ≥ 0.70; HA: p < 0.70
b. Calculate the sample proportion. (Round your answer to 3 decimal places.)
c. Calculate the value of test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
Solution :
a ) This is the two tailed test .
The null and alternative hypothesis is
H0 : p =0.70
Ha : p 0.70
x = 62
n = 80
b ) = x / n = 62 / 80 = 0.775
P0 = 0.70
1 - P0 = 1 - 0.70 = 0.30
c ) Test statistic = z
= - P0 / [P0 * (1 - P0 ) / n]
= 0.775 - 0.70 / [0.70 - 0.30 /80 ]
= 1.464
Test statistic = z = 1.46
P-value = 0.1432
= 0.01
P-value ≥
0.1432 ≥ 0.01
Do not reject the null hypothesis .
There is insufficient evidence to suggest that
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